The Hunter region has long been recognised for its industrial expertise, and with defence modernisation a growing national priority, local businesses are increasingly looking to engage with this sector. At the recent Hunter iF Innovators Lunch, industry leaders and experts explored the opportunities, challenges, and commercial risks associated with defence innovation and investment.
Moderated by Bret Barton, Deputy Chair of the Hunter Defence Taskforce, the panel featured Tim Owen, Chair of the Hunter Defence Taskforce, alongside defence and technology specialists Alex Shapilsky from Cicada Innovations, Tarrant Fuller from 3ME Technology, and Evan Gibbs from Wild Yeast Zoo. Their discussion provided valuable insights for businesses considering entry into the defence market, from early-stage innovation to scaling commercial capabilities.
Gathering a room full of people eager to discuss defence strategy, procurement, and industry investment on Valentine’s Day may not be the traditional way to mark the occasion, but it certainly proved that commitment to the sector is alive and well. While others were focusing on matters of the heart, this audience was firmly focused on the future of sovereign capability, technological innovation, and unlocking opportunities in defence.
The Hunter Region’s role in defence innovation
As a region with a strong industrial foundation, the Hunter is well positioned to contribute to national and global defence initiatives. Tim Owen highlighted the strength of local small and medium-sized enterprises (SMEs) in advanced manufacturing, engineering, and emerging technologies. However, he stressed that for businesses to successfully engage with defence, they must understand both the sector’s evolving needs and the often-complex procurement processes.
“The Hunter has significant capability, but we need to be strategic in how we present ourselves to defence. It’s not just about what we can offer but about demonstrating how our innovations meet a genuine need,” Owen explained.
The panel reinforced that businesses need to take a long-term view. Defence contracts are not won overnight, and engagement with primes and government agencies must be consistent, informed, and strategically positioned.
Funding and commercialisation: navigating the hurdles
One of the primary challenges for businesses looking to enter the defence sector is accessing funding. While the Australian government has historically supported defence innovation through initiatives like the Defence Innovation Hub, funding models are shifting, and businesses must be proactive in seeking opportunities.
Tim Owen noted the importance of leveraging research partnerships and exploring venture capital-style funding mechanisms that could support early-stage defence innovation. Alex Shapilsky, who leads space and defence initiatives at Cicada Innovations, echoed this, explaining that while traditional funding pathways exist, startups and SMEs must also consider commercial viability beyond defence-specific applications.
“It’s about finding the right market fit,” Shapilsky said. “The best approach isn’t just to develop technology for defence but to look at dual-use applications—solutions that can serve both defence and civilian markets. That can make all the difference in securing funding and long-term sustainability.”
The importance of dual-use technologies
A major theme of the discussion was the role of dual-use technologies—commercially developed innovations that have both civilian and defence applications. The panel highlighted that defence is increasingly looking outside traditional suppliers for solutions that can enhance operational capability, from energy-efficient technologies to AI-driven logistics.
Tarrant Fuller shared insights from 3ME Technology’s journey, explaining how the company transitioned its expertise in electric vehicle battery systems from mining into the defence sector. He emphasised that while defence offers significant commercial opportunities, the process of securing contracts is vastly different from other industries.
“The procurement cycles in defence can be slow, and it takes persistence,” Fuller said. “For SMEs, the key is to demonstrate real-world application and scalability—how a prototype can move into production and meet the needs of defence at scale.”
Breaking into the US market
While the Australian defence industry offers significant opportunities, the United States remains a key market for many companies due to its larger budget and faster procurement pathways. The panel acknowledged that some Australian SMEs have found it easier to secure US defence contracts than Australian ones.
“The US is actively looking at Australian innovations, particularly in areas like energy, logistics, and autonomous systems,” Owen said. “The challenge for Australian companies is understanding the different procurement models and how to position themselves effectively.”
Businesses seeking to enter the US market were advised to build relationships with key agencies, particularly those involved in defence innovation. The panel encouraged companies to attend major defence and aerospace events, where international partnerships can be fostered.
Positioning for success: networking and engagement
Throughout the discussion, a common theme was the need for ongoing engagement with defence networks, industry bodies, and government programmes. Events such as Avalon Airshow, Indo Pacific, and the International Astronautical Congress provide critical opportunities for businesses to showcase their capabilities and connect with decision-makers.
For companies new to the sector, tapping into existing incubators and advisory programmes—such as those offered by Hunter Defence and Cicada Innovations—can help navigate the complexities of working with defence clients.
“Defence can feel like a closed shop at first,” said Barton. “But there are networks and pathways available. It’s about taking the time to understand the process, engage with the right people, and position your business effectively.”
Looking ahead: the future of defence innovation in the Hunter
The event concluded with a clear message: the Hunter region has the expertise and industrial capability to play a critical role in Australia’s defence sector. However, businesses must be prepared for the long game. Success in defence requires more than just innovation—it demands strategy, persistence, and a clear understanding of procurement pathways.
For those looking to enter the market, the key takeaway was clear: start by understanding the sector, explore dual-use applications, leverage research and funding opportunities, and build strong industry connections. With the right approach, businesses in the Hunter region can position themselves at the forefront of defence innovation.
Get involved
If your business is considering opportunities in the defence sector, reach out to Tim Owen and Bret Barton to learn how Hunter Defence can support your entry into the industry.
If you’re a startup or SME, make sure your business is listed in the Hunter Defence Capability Directory—a free resource designed to showcase local expertise to defence buyers and industry partners.
